Question re: joint mortgage and split of property ownership

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Willow123

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Hi, myself and my partner are looking to buy a house together. He has sold his own house (bought before we met) and has a cash lump sum to put towards a new house for both of us. We will have to top up that cash amount with a mortgage (probably only up to €180k) as the lump sum won’t cover a house in the area we want to buy.

My partner does not want to be saddled with another mortgage. He feels that as he is contributing the lump sum that I should pay the mortgage myself as my contribution. I have enquired from a “friend of a friend” who used to work in mortgages and they have said that in this scenario, the mortgage would have to be taken out jointly as I would not be allowed take out a mortgage solely in my name for a portion of a property ie if the house is to be in joint names then the mortgage has to be also.

Hypothetically if this was to happen with him providing the lump sum (which will be more than the amount of the mortgage) and me paying the mortgage amount of the balance-how does this work with regards to ownership of the house? Obviously he would have a bigger stake in it than me. Do we get some sort of agreement drawn up to say if we ever split and the house was sold that he would get X amount and I would get Y? Just trying to find out a bit of info on this before we start searching. Thanks.
 
Nobody has answered since you posted but if you're still waiting...
  1. Are you married?
  2. Are you planning to get married?
  3. Will you (both?) be occupying this house or is it an investment/rental property?
  4. Whose name(s) will be on the deeds?
  5. If you're buying as an unmarried couple (effectively, strangers in the eyes of the law) then some sort of written agreement outlining what should happen should you break up is probably a good idea.
  6. You should probably get legal advice. You'll need a solicitor anyway for the purchase.
 
Willow123 said:
My partner does not want to be saddled with another mortgage. He feels that as he is contributing the lump sum that I should pay the mortgage myself as my contribution.
Click to expand...
Your shouldn't buy a property with someone unless they have a major change of attitude from what's outlined here.

If you are planning to live with someone long term in a committed relationship then you have to look at your income and wealth as one thing, not two.

The questions @ClubMan has asked are all relevant. A lot of this is moot if you have kids and/or get married as there is no longer any his-and-hers finances any more.
 
Hi Willow

I take the directly opposite view to Coyote on this. Most people don't have this conversation before they buy a house and if they split up, there is war. So it is great that he has the courage to bring it up and that you can discuss it openly. If you split up, then you should have less hassle if everything is written down clearly.

There are a few ways of doing this.

1) You own the house in proportion to the amount each contributes.
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2) Equal ownership

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I think that this is better. It means that your interests are aligned fully. If you need a new roof, you pay for it 50/50.
 
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Your agreement should cover the following:

1) The percentage ownership of each.
2) What happens if you break up or if one wants to sell
I suggest that
A can give notice that they want to sell.
An independent valuation be got.
B has 6 months to raise the finances to buy out A at this price.
If they don't want to or can't buy out A, then A can buy out B at this price or put the house on the market.
The Independent Valuer decides if the house should be sold.
3) If you have a mutual friend e.g. a solicitor or an accountant, maybe appoint them to make a final decision on any dispute including the valuation.
 
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